Markets continue to trade in high spirit in early noon session

India equity benchmarks continued to trade higher in early noon session on account of buying by domestic investors and foreign funds ahead of IIP and inflation data due to be released later in the day. Sentiment got boost after the Rajya Sabha approved Insolvency and Bankruptcy Code Bill on Wednesday. The passage of Insolvency and Bankruptcy Code will add to the attractiveness of India as a destination for long-term foreign investment and will establish an entrepreneur- friendly legal bankruptcy framework for speedy, efficient and consistent resolution of insolvencies for companies and individuals. Sentiment remained upbeat with Finance Minister Arun Jaitley’s statement that India can grow better and faster on the back of global recovery and good monsoon. He also said that while the global economies were faltering between - 2 to 2% and projections were being lowered, India is recording a growth rate of 7.5 to 7.6% despite obstructionist global environment and "we can do still better”. He also added that  some sectors like steel, sugar, power and infrastructure have started doing well after the steps taken by the government and hoped that it would give a further boost to the economy. He further added that India has emerged as the fastest growing major economy in the world overtaking China by recording a growth rate of 7.6 per cent in 2015-16. Some support also came in with the Economic Affairs Secretary -- Shaktikanta Das’ statement that India continues to be a robust economy and investments will come in because of fundamentals of the economy and because of the strength and resilience of the economy and return that India offers post tax.

On the global front, Asian markets were trading mostly lower, after U.S. stocks closed lower overnight in reaction to weak corporate earnings results. Meanwhile, crude oil prices slipped in Asian trades after hitting a new 2016 high overnight.

Back home, both the Sensex and Nifty were trading above their crucial 25,750 and 7,900 levels, respectively. In scrip specific development, share of Jubilant Life Sciences was trading higher after the company’s wholly-owned subsidiary and Australia-based Cyclopharm mutually called off their previously announced term sheet for exclusive commercial rights for Technegas in the US market. 

The BSE Sensex is currently trading at 25755.81, up by 158.79 points or 0.62% after trading in a range of 25676.32 and 25827.03. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.58%, while Small cap index up by 0.88%.

The top gaining sectoral indices on the BSE were Realty up by 1.81%, Bankex up by 1.19%, Power up by 0.90%, Consumer Durables up by 0.79% and IT up by 0.68%, while they were no losers on the sectoral index.

The top gainers on the Sensex were ICICI Bank up by 2.68%, Asian Paints up by 2.10%, Adani Ports &Special up by 1.86%, Lupin up by 1.65% and Tata Motors up by 1.53%. On the flip side, Hindustan Unilever down by 1.04%, Maruti Suzuki down by 0.64%, Coal India down by 0.26%, Bharti Airtel down by 0.13% and Tata Steel down by 0.08% were the top losers.

Meanwhile, referring to 42 per cent increase in the indirect tax collection during April, the first month of the current Financial year, Finance Minister Arun Jaitley  has said that India can grow better and faster on the back of global recovery and good monsoon. He added that 'India is a fast growing economy. The whole world is looking at us. If growth returns to the world, then we can grow better and faster.'

On the sectoral front, Jaitley said that some sectors like steel, sugar, power and infrastructure have started doing well after the steps taken by the government and hoped that it would give a further boost to the economy.  Furthermore, he said that while the global economies were faltering between - 2 to 2% and projections were being lowered, India is recording a growth rate of 7.5 to 7.6% despite obstructionist global environment and 'we can do still better.' India has emerged as the fastest growing major economy in the world overtaking China by recording a growth rate of 7.6% in 2015-16.

Indirect tax collections which include customs duty, central excise duty and service tax, has surged by 42 percent to Rs 64,394 crore during the month of April, compared to Rs 45,417 crore in the first month of last fiscal 2015-16, on back of additional revenue mobilisation measures such as increase in excise duty on petroleum products and also due to an economic recovery.

The CNX Nifty is currently trading at 7900.05, up by 51.20 points or 0.65% after trading in a range of 7871.45 and 7916.05. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 2.81%, Asian Paints up by 2.22%, Adani Ports &Special up by 1.94%, Lupin up by 1.87% and Hindalco up by 1.80%. On the flip side, Zee Entertainment down by 1.15%, Hindustan Unilever down by 1.11%, Maruti Suzuki down by 0.64%, Aurobindo Pharma down by 0.62% and Grasim Industries down by 0.34% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 75.04 points or 0.37% to 19,980.25, Taiwan Weighted decreased 27.51 points or 0.34% to 8,108.05, Shanghai Composite decreased 10.06 points or 0.35% to 2,826.97 and KOSPI Index decreased 2.61 points or 0.13% to 1,977.49, while FTSE Bursa Malaysia KLCI increased 0.33 points or 0.02% to 1,644.91, Nikkei 225 increased 15.52 points or 0.09% to 16,594.53 and Jakarta Composite increased 18.76 points or 0.39% to 4,818.73.